Under utilised offset account

Scouse77

Hi

I have an offset account on my mortgage and I have £150K of spare capacity. My mortgage is at 3% and I am happy to pay someone 2.5% savings rate to use the account. Happy to offer this on a fixed 1 year period or longer if necessary.

Is there any peer to peer savings accounts where I can 'borrow' money on this basis?

The money will not be at risk.

Let me know if anyone can help.

Thanks

racing_blue

How will the money not be at risk? (From the perspective of an investor, who does not have first hand knowledge of your no doubt impeccable character)

Scouse77

Just trying to find out whether there is any way to maximise my offset facility. If there isnt then so be it.

racing_blue

Accepted. But can you explain how the money will not be at risk, from the perspective of an investor? I think this is key.

YorkshireBoy

Scouse77 wrote: »

Just trying to find out whether there is any way to maximise my offset facility.

• Affluent friends and family?...although they may prefer the benefit of YBS Offset Plus (would you change provider?), in that if you don't pay one month they pull their savings, thereby minimising their loss!
• Credit card stoozing? (should be quite easy if you're prepared to accept 0.5% benefit)
• Withdraw your existing offset savings and gamble them on peer to peer lending? Again, 0.5% gain should be achievable.

Having said all that, I may have wasted my time if the forum team think your post breaks forum rules!

Scouse77

When I said not at risk I meant in the sense that the funds will be untouched in my offset account rather than being invested in a business or spent like a personal loan for a holiday or car etc.

Scouse77

I didnt mean to break any rules. Thanks for your help. Useful tips. I was looking to put my current offset savings into peer to peer lending which is where my opening post came from.

racing_blue

No reason you can't do that. Zopa advertise 5.1% annualised return for lenders. Would you be happy to accept the risk?

Scouse77

Yay to the redmen!

YorkshireBoy

racing_blue wrote: »

No reason you can't do that. Zopa advertise 5.1% annualised return for lenders. Would you be happy to accept the risk?

Is that taxable? If OP's income hasn't dropped from 4 years ago (when they stated on here they had a joint income of £100K plus bonuses), there'll be 40% tax on that though?...meaning a net 3.06%. Doesn't sound too appealing now I bet!

Scouse77

I may end up using zopa or ratesetter with some of my savings as my googling hasnt found anyway to maximise my offset.